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Recession fears are growing. Here’s how younger Canadians can prepare – Global News

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Experts say younger Canadians can prepare for a possible recession by assessing their financial capabilities and limitations.

Amid soaring inflation and the Bank of Canada increasing interest rates more aggressively relative to past tightening cycles, concerns about a possible recession are growing. A lacklustre stock market is adding fuel to the fire, as market declines tend to happen before a recession strikes.

“I’d be lying if I said a looming recession wasn’t worrying,” says Braveen Kumar, who is currently working on building his freelance business.

Kumar recently left his job in tech and even though he managed to save eight months’ worth of money for living expenses in order to make the career change, he is budgeting much more diligently now since he does not have a regular salary.

Read more:

Interest rates must still rise despite high debt, house prices: Bank of Canada

Camille Horrocks-Denis is a documentary media student, and while she is supported by provincial loans and grants, works two jobs and lives with her partner, the high cost of living in Toronto is making her day-to-day more challenging as she considers the potential impact a recession might have on someone like her.

“One thing for sure is that being in the arts industry, there is no guaranteed job (in my field) waiting for me after graduation, therefore a recession could potentially affect me deeply,” she says.

CIBC economist Katherine Judge is not sounding the alarm quite yet on a recession, but says if Canada does fall into one, it could be in late 2022 or in the first half of 2023. She doesn’t anticipate it being as bad as 2008, however.


Click to play video: 'Tips for your money amid higher interest rates'



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Tips for your money amid higher interest rates


Tips for your money amid higher interest rates

“The 2008 recession was atypically deep, and if we were to experience a recession this time, odds are it wouldn’t be as severe,” she says. “We expect the Bank of Canada to hike a bit less than the market is pricing in, thereby avoiding an outright recession if the (U.S.) Federal Reserve is also cautious about overdoing hikes.”

Nevertheless, personal finance experts say “recession-proofing” oneself right now is imperative.

For people in their 20s and early 30s, the COVID-19 pandemic has been the biggest global event they’ve had to navigate as working adults, and it has forced many to look at their finances more carefully and even re-examine their career paths, putting them in a position to keep the momentum of personal growth going.

READ MORE: Bank of Canada hikes key interest rate 50 basis points for 2nd time in a row

Personal finance educator Kelley Keehn believes a lot of “recession-proofing” is based around how young adults shape their career trajectory.

She says people should view themselves as a corporation.

“If you’re always thinking of everyone as a customer, always looking for opportunities because you’re thinking like a company, that’s really going to serve you well,” she says.

She also emphasizes the importance of broadening one’s skillset _ through certifications, courses, books, and even by following reliable social media channels and influencers _ so it becomes easier to pivot in the job market if necessary. Continuing to network is just as important if not more important, she adds.


Click to play video: 'Consumer Matters: Digital tools to bring financial relief'



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Consumer Matters: Digital tools to bring financial relief


Consumer Matters: Digital tools to bring financial relief

Marketing professional Ankit Mishra says he is “quite concerned” about a potential recession and is upskilling as a result, learning French and researching industries that could be resilient during an economic downturn. In his case, he’s exploring how technology could make life in cities better and learning about sustainability in the mining industry.

When it comes to saving and spending amid sky-high inflation and recession concerns, Keehn says it is important tothoughtfully consider whether or not certain activities or purchases will actually bring value or ultimately hurt one’s bank account. That’s especially true as the world reopens and spending opportunities increase.

She also urges young people to assess their financial capabilities and limitations thoroughly before investing in the stock market, even during bull market runs, which we saw after the March 2020 selloff and through 2021 _ a period that enticed many young people to jump in with the hope of seeing big gains.

She cites her own investing mistakes from when she was much younger, in particular, putting money into the market before she could really handle the implications and then being forced to pull it out when it was at a loss.

“You have to be clear on: can you actually be invested or do you just need to save money right now,” she says.

This report by The Canadian Press was first published June 9, 2022.

© 2022 The Canadian Press

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Port of Montreal employer submits ‘final’ offer to dockworkers, threatens lockout

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MONTREAL – The employers association at the Port of Montreal has issued the dockworkers’ union a “final, comprehensive offer,” threatening to lock out workers at 9 p.m. Sunday if a deal isn’t reached.

The Maritime Employers Association says its new offer includes a three per cent salary increase per year for four years and a 3.5 per cent increase for the two subsequent years. It says the offer would bring the total average compensation package of a longshore worker at the Port of Montreal to more than $200,000 per year at the end of the contract.

“The MEA agrees to this significant compensation increase in view of the availability required from its employees,” it wrote Thursday evening in a news release.

The association added that it is asking longshore workers to provide at least one hour’s notice when they will be absent from a shift — instead of one minute — to help reduce management issues “which have a major effect on daily operations.”

Syndicat des débardeurs du port de Montréal, which represents nearly 1,200 longshore workers, launched a partial unlimited strike on Oct. 31, which has paralyzed two terminals that represent 40 per cent of the port’s total container handling capacity.

A complete strike on overtime, affecting the whole port, began on Oct. 10.

The union has said it will accept the same increases that were granted to its counterparts in Halifax or Vancouver — 20 per cent over four years. It is also concerned with scheduling and work-life balance. Workers have been without a collective agreement since Dec. 31, 2023.

Only essential services and activities unrelated to longshoring will continue at the port after 9 p.m. Sunday in the event of a lockout, the employer said.

The ongoing dispute has had major impacts at Canada’s second-biggest port, which moves some $400 million in goods every day.

On Thursday, Montreal port authority CEO Julie Gascon reiterated her call for federal intervention to end the dispute, which has left all container handling capacity at international terminals at “a standstill.”

“I believe that the best agreements are negotiated at the table,” she said in a news release. “But let’s face it, there are no negotiations, and the government must act by offering both sides a path to true industrial peace.”

Federal Labour Minister Steven MacKinnon issued a statement Thursday, prior to the lockout notice, in which he criticized the slow pace of talks at the ports in Montreal and British Columbia, where more than 700 unionized port workers have been locked out since Nov. 4.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” he wrote on the X social media platform.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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‘Disgraceful:’ N.S. Tory leader slams school’s request that military remove uniform

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HALIFAX – Nova Scotia Premier Tim Houston says it’s “disgraceful and demeaning” that a Halifax-area school would request that service members not wear military uniforms to its Remembrance Day ceremony.

Houston’s comments were part of a chorus of criticism levelled at the school — Sackville Heights Elementary — whose administration decided to back away from the plan after the outcry.

A November newsletter from the school in Middle Sackville, N.S., invited Armed Forces members to attend its ceremony but asked that all attendees arrive in civilian attire to “maintain a welcoming environment for all.”

Houston, who is currently running for re-election, accused the school’s leaders of “disgracing themselves while demeaning the people who protect our country” in a post on the social media platform X Thursday night.

“If the people behind this decision had a shred of the courage that our veterans have, this cowardly and insulting idea would have been rejected immediately,” Houston’s post read. There were also several calls for resignations within the school’s administration attached to Houston’s post.

In an email to families Thursday night, the school’s principal, Rachael Webster, apologized and welcomed military family members to attend “in the attire that makes them most comfortable.”

“I recognize this request has caused harm and I am deeply sorry,” Webster’s email read, adding later that the school has the “utmost respect for what the uniform represents.”

Webster said the initial request was out of concern for some students who come from countries experiencing conflict and who she said expressed discomfort with images of war, including military uniforms.

Her email said any students who have concerns about seeing Armed Forces members in uniform can be accommodated in a way that makes them feel safe, but she provided no further details in the message.

Webster did not immediately respond to a request for comment.

At a news conference Friday, Houston said he’s glad the initial request was reversed but said he is still concerned.

“I can’t actually fathom how a decision like that was made,” Houston told reporters Friday, adding that he grew up moving between military bases around the country while his father was in the Armed Forces.

“My story of growing up in a military family is not unique in our province. The tradition of service is something so many of us share,” he said.

“Saying ‘lest we forget’ is a solemn promise to the fallen. It’s our commitment to those that continue to serve and our commitment that we will pass on our respects to the next generation.”

Liberal Leader Zach Churchill also said he’s happy with the school’s decision to allow uniformed Armed Forces members to attend the ceremony, but he said he didn’t think it was fair to question the intentions of those behind the original decision.

“We need to have them (uniforms) on display at Remembrance Day,” he said. “Not only are we celebrating (veterans) … we’re also commemorating our dead who gave the greatest sacrifice for our country and for the freedoms we have.”

NDP Leader Claudia Chender said that while Remembrance Day is an important occasion to honour veterans and current service members’ sacrifices, she said she hopes Houston wasn’t taking advantage of the decision to “play politics with this solemn occasion for his own political gain.”

“I hope Tim Houston reached out to the principal of the school before making a public statement,” she said in a statement.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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Sides in B.C. port dispute to meet in bid to end lockout after talk with minister

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VANCOUVER – Employers and the union representing supervisors embroiled in a labour dispute that triggered a lockout at British Columbia’s ports will attempt to reach a deal when talks restart this weekend.

A spokesman from the office of federal Labour Minister Steven MacKinnon has confirmed the minister spoke with leaders at both the BC Maritime Employers Association and International Longshore and Warehouse Union Local 514, but did not invoke any section of the Canadian Labour Code that would force them back to talks.

A statement from the ministry says MacKinnon instead “asked them to return to the negotiation table,” and talks are now scheduled to start on Saturday with the help of federal mediators.

A meeting notice obtained by The Canadian Press shows talks beginning in Vancouver at 5 p.m. and extendable into Sunday and Monday, if necessary.

The lockout at B.C. ports by employers began on Monday after what their association describes as “strike activity” from the union. The result was a paralysis of container cargo traffic at terminals across Canada’s west coast.

In the meantime, the union says it has filed a complaint against the employers for allegedly bargaining in bad faith, a charge that employers call a “meritless claim.”

The two sides have been without a deal since March 2023, and the employers say its final offer presented last week in the last round of talks remains on the table.

The proposed agreement includes a 19.2 per cent wage increase over a four-year term along with an average lump sum payment of $21,000 per qualified worker.

The union has said one of its key concerns is the advent of port automation in cargo operations, and workers want assurances on staffing levels regardless of what technology is being used at the port.

The disruption is happening while two container terminals are shut down in Montreal in a separate labour dispute.

It leaves container cargo traffic disrupted at Canada’s two biggest ports, Vancouver and Montreal, both operating as major Canadian trade gateways on the Pacific and Atlantic oceans.

This is one of several work disruptions at the Port of Vancouver, where a 13-day strike stopped cargo last year, while labour strife in the rail and grain-handling sectors led to further disruptions earlier this year.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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